NSL Brings Telangana’s 1st Foreign Investment Of 1000 Cr

As we reported yesterday, NSL Consolidated Ltd, the Australian Coal & Iron mining firm, is investing in Telangana for an Iron Ore plant. The company’s Chief Operating Officer Sean Freeman met the CM with his team and explained their plans to setup Iron pellet plants in Karimnagar & Siddipet. They submitted plans to invest Rs 1000 Cr in 1st phase. Eventually, NSL want to setup a steel plant in the location feeding on the available Iron Ore, with an additional investment of Rs 1500 Cr. 2000 jobs would be created immediately when the project commences, as per officials. CM’s Principal Secretary S Narsing Rao & Telangana Chief Secretary Rajeev Sharma were present in the discussions with the company’s officials and KCR asked them to make sure there is no red tape involved in getting the project grounded, after all formalities are complete.

Karimnagar is rich in Iron Ore deposits. Iron ore essentially magnetite, with more than 60% iron occurs near Yerabali  in Huzurabad Taluk.  A number of magnetite occurrences are known in Jagtial, Arnakoda, Mallapur and Choppandandi. NSL  has a 290-acre Mining Lease application for Karimnagar. While initially it was said Karimnagar had a reserve of about 16 million tonnes of low grade ore, NSL’s documents submitted to Australian stock exchange mentionan exploration target of 62-125 million tonnes of magnetite at 20% to 50% iron. Both Karimnagar and Medak seem to have around 200 million tonnes of Iron Ore with 20%-50% iron. NSL would treat the Iron with their technologies and increase the grade to as much as 58%.

The high volume of ore seems to have made NSL consider the beneficiation and pelletisation potential for the mining project and come up with this plan to setup a plant.